While many consumers are scrambling to reduce their risk of identity theft, one business appears to be making it easier than ever to forge checks. Qchex.com allows customers to create checks without verifying the account holder's identity, according to authorities.

As the Board is well aware, identity theft is the fastest growing crime in America. The Federal Trade Commission (FTC) estimates that identity theft claims nearly 10 million victims annually, costing millions to consumers and business alike. Significantly, a high percentage of identity theft complaints involve fraudulent use of open-end (revolving) credit products, particularly credit cards. Unsolicited credit products such as convenience checks and activated cards sent through the mail create opportunities for theft. For this reason, we limit our comments here to questions posed by the Board that have broad implications for victims of identity theft.

Criminal identity theft occurs when an imposter gives another person’s name and personal information, such as a Social Security number, driver’s license number, and date of birth, to a law enforcement officer upon arrest or during an investigation. Or the imposter may give to law enforcement a counterfeit driver’s license or identification card containing another person’s information. Read Beth Given's presentation at the Identity Theft Summit in 2005.

The recent security breaches of sensitive customer information held by ChoicePoint and Bank of America have underscored how vulnerable consumers are to threats of identity theft and the need for stronger protections to reduce such fraud. Watchdog groups are calling for new laws that provide proper oversight of businesses that collect and sell sensitive consumer information and tougher safeguards to give consumers the tools they need to stop identity theft before it starts.

Data aggregators compile in-depth dossiers of personal information on almost everyone, even though many have never heard of them, have never had an account with them, nor have given them permission to obtain personal information. Until recently, many Americans had never heard of ChoicePoint, one of the largest data aggregators. But with recent information coming to light that identity thieves opened 50 accounts to access ChoicePoint’s databases of personal information, many people are just realizing that companies like ChoicePoint exist.

A few years ago a Southern California woman named Michelle Brown contacted the Privacy Rights Clearinghouse seeking help regarding an especially difficult identity theft situation. The thief obtained information provided by Michelle on a housing application and procured over $50,000 in goods and services including a lease for an apartment, a $32,000 truck, and liposuction. The thief also obtained a state- issued ID using Michelle's name and later engaged in drug smuggling for which she was arrested as Michelle.

Discussions on preventing identity theft often focus on steps consumers can take, such as shredding their trash and restricting access to their Social Security number (SSN). But realistically, while such measures can reduce the odds of becoming a victim, there is little individuals can do to actually prevent identity theft. The keys to prevention are two-fold, involving the credit industry and the workplace: